Canadian Immigration: Entrepreneur Visas

BACKGROUND

The Entrepreneur Visa program is intended to attract permanent resident visa applicants who have business ownership and management experience who wish to establish, purchase or invest in a business in Canada which they will be actively involved in owning and managing.

WHO IS ELIGIBLE?

In order to qualify for an Entrepreneur Visa, you must meet the following requirements:

1. Net Worth. You must have a net worth of $CAD300,000 ($US225,000) or more which you have acquired legally, and which you are prepared to bring with you to Canada. Your assets may include inheritances and assets owned by your spouse, common-law or same sex partner.
2. Ownership and Management of a “Qualifying Business”. During two of the past five years you managed and had an ownership interest in a “Qualifying Business”. A “Qualifying Business” is one which, depending on your percentage level of ownership, meets two (2) of the four (4) Business Performance Factors shown below.

QUALIFYING BUSINESS (ENTREPRENEUR)


	OWNERSHIP PERCENTAGE
BUSINESS PERFORMANCE REQUIREMENTS	100%	50%	33.33%	25%
1. EMPLOYEES	2	4	6	8
2. SALES ($CAD)	500,000	1,000,000	1,500,000	2,000,000
3. NET INCOME ($CAD)	50,000	100,000	150,000	200,000
4. EQUITY ($CAD)	125,00	250,000	375,000	500,000

Example: If you own 50% of a business in your home country, it will be a “Qualifying Business” if the performance of the business during the two-year measurement period meets at least two of the four Business Performance Requirements listed under the 50% Column.

3. Ownership and Management of a “Canadian Qualifying Business”. You must be prepared to give a written undertaking to the Canadian immigration authorities promising that for a period of at least one year during the first three years following your landing in Canada, you will actively own and manage a “Canadian Qualifying Business”. You do not have to own 100% of the Canadian business, but you must own at least 33% during the one-year period. You will have to show that during the one-year period, depending on your level of ownership, the Canadian business met at least two of the four Business Performance Requirements shown below:

CANADIAN QUALIFYING BUSINESS (ENTREPRENEUR)


	OWNERSHIP PERCENTAGE
BUSINESS PERFORMANCE REQUIREMENTS	100%	50%	33.33%
1. EMPLOYEES	2	4	6
2. SALES ($CAD)	250,000	500,000	750,000
3. NET INCOME ($CAD)	25,000	50,000	75,000
4. EQUITY ($CAD)	125,00	250,000	375,000


Example: You arrive in Canada with your family on June 1, 2004. In January, 2005 you purchase a 50% ownership interest in a restaurant and you are involved in the day-to-day management. After 12 months of operation, the financial results for the restaurant are as follows;

No. of Employees: Six (6)*
Annual sales: $CAD1,000,000*
Net Income: $CAD135,00*
Equity: $200,000

*Performance exceeds minimum requirement level for 50% ownership interest

The restaurant is a “Qualifying Canadian Business” because:

• you have been actively involved in managing the business,
• the performance of the business during the one year period from January, 2005 to January, 2006 exceeded the minimum required for a business where you are a 50% owner in two of the four Business Performance Requirements (in fact, you exceeded the minimum levels in three of the four Business Performance Requirements), and
• you became a 50% owner of the business within three years after you landed in Canada.
  
4. The “Qualifying Canadian Business” Must be an Active Business. The Canadian business must be an active business operation which you must be involved in managing. It cannot be a passive business - for example, a business which makes investments in real estate, the stock market, etc. A professional practice will be acceptable provided that it meets the Canadian Qualifying Business requirements set out above.
5. Creation of One Full-Time Job. The Canadian business must create at least one full-time job for a Canadian citizen or permanent resident other than for yourself or your accompanying family members. A full-time employee is one who works at least 37.5 hours per week.

SELECTION SYSTEM

The Entrepreneur Visa program uses a modified point system to assess applicants. This system requires the applicant to score 35 points out of a possible 100 points. Factors evaluated include: business experience, age, education, language ability in English and/or French, and an adaptability factor in which points are awarded to applicants who make an exploratory trip to Canada. This system is highly favourable to entrepreneur applicants. If you meet the Business Ownership and Management Experience requirements discussed above, you will likely not have any difficulty in scoring the required number of points.

EXPLORATORY TRIP TO CANADA

Applicants under the Entrepreneur Visa program should make every effort possible to make an exploratory trip to Canada prior to making their application in order to learn more about business opportunities and conditions in the province where they intend to settle. Applicants who make an exploratory trip may be awarded additional points by the Canadian immigration authorities for doing so. If you are planning to make an exploratory trip, you should contact the provincial government department or agency responsible for business immigration in the province where you intend to settle prior to your departure so as to arrange the trip.

PERMANENT RESIDENT VISA CONDITIONS

If you are approved for permanent residence under the Entrepreneur Visa program you will be issued a conditional permanent resident visa valid for three years. During the first two years of this period you will be expected to take steps to comply with your undertaking to own and manage a Canadian Qualified Business and to create one full-time job for a Canadian citizen or permanent resident. During this time you will also be required to periodically report to and meet with a Canadian immigration officer who will monitor your progress and will be available to provide you with counseling on meeting the conditions of your permanent residence visa. Once you have met the conditions, you may apply to have your permanent resident visa conditions varied or cancelled. If you fail to meet the conditions within the prescribed three year period, you and your dependants may lose your permanent resident status and your right to remain in Canada.

VISA PROCESSING

• Applications under the Entrepreneur Visa program must be submitted to the Canadian visa office outside of Canada which serves the Primary Applicant's country of habitual residence or citizenship.
• Your spouse or common law partner and all dependant children under the age of 22 years must be included in the application. For Canadian immigration purposes, Canada recognizes marriages between persons of the same sex and applicants who were married to same sex partners in jurisdictions in which same such marriages are lawful may qualify as common law or conjugal partners.
• Depending upon the circumstances disclosed in your application, you and your dependents may be required to attend an interview. If your application is favourably assessed, you and your dependents will be required to undergo background security checks and a Canadian Immigration Medical Examination. If your background security and medical checks are clear, you will normally be issued a Canadian immigration visa permitting you to take up permanent residence in Canada.

READ MORE . . . about Skilled Worker Visas about Entrepreneur Visas about Investor Visas about Self-Employed Individual Visas about Family Visas about Canadian Immigration Medical Examinations

Disclaimer: The information contained on this site is intended to educate members of the public generally and is not intended to provide legal or professional advice or solutions to individual problems. If you require legal advice or assistance, you should consult a qualified Canadian immigration lawyer.